Some years ago, Redmond developed a project for one of its commercial properties to replace the existing office building with a much larger hotel. An independent hospitality industry expert presented the project to various hotel chains. There was considerable interest due to the excellent location of the property in the downtown area close to the main station and the neighboring 100,000 m2 'New Town Centre' (Nowy Rynek). In the immediate vicinity of the property is also the Wolne Tory railway land which will be the site of the city's future expansion. We assessed various offers collected by the independent consultant. Several options were considered: long term rental agreements with hotel chains, hotel management and franchise agreements offering some fixed and variable returns and a forward sale to a hotel chain. The franchise agreement with a leading global brand was found to be the most attractive risk-reward balance. However COVID later intervened leading Redmond to decide instead to lease the existing office building to a technology industry company.
